The New Jersey Economic Development Authority (NJEDA) Board approved the fourth investment from the New Jersey Innovation Evergreen Fund (NJIEF) into an emerging Princeton-based life sciences company, RICOVR Healthcare, which is developing a rapid diagnostic test for cannabis use. The investment into RICOVR comes from the approval of an application submitted by Yaax Capital for an initial Qualified Investment of $400,000.
“The New Jersey Innovation Evergreen Fund is a transformative initiative, designed to boost New Jersey’s economy and support high-growth start-ups by providing a self-sustaining investment cycle for entrepreneurs in need of access to capital. At a time when overall market investments are lower, New Jersey’s investments into young companies continues to grow,” said NJEDA Chief Executive Officer Tim Sullivan. “Under Governor Phil Murphy’s leadership, the Garden State remains a global innovation leader by investing in the next generation of emerging companies.”
The NJIEF, launched in 2022, is a unique tool to increase access to strategic resources and venture capital in New Jersey. Under the NJIEF, the State acts as an equity investor in early-stage companies, deploying up to $600 million into companies alongside professional venture capital firms. The Evergreen Fund currently has over $30 million available and is expected to use this to fund initial investments into additional high-growth businesses in New Jersey. The NJEDA is planning for another tax credit auction in 2025 to raise additional capital for further investment.
“Today’s Board approval into RICOVR boosts the company’s momentum, giving them the tools they need to succeed. The New Jersey Innovation Evergreen Fund has made four investments thus far with no signs of slowing down, proving that New Jersey is dedicated to nurturing life science ventures,” said NJEDA Chief Economic Transformation Officer Kathleen Coviello. “NJIEF’s ongoing venture capital investments into high-growth start-ups foster job creation and economic development throughout the State.”
Based in Princeton, RICOVR Healthcare is a life sciences company founded by Dr. Himanshi Bhatia, the company’s CEO. RICOVR is currently in the process of developing an innovative technology called XALIVA, a point-of-care medical device that uses saliva to provide rapid diagnostics results. Initially, XALIVA will be targeting Tetrahydrocannabinol (“THC”) testing. RICOVR’s initial product offering aims to solve the problem in today’s workforce where employees are unjustly fired for consuming cannabis in off-work hours. The XALIVA THC test only detects recent use (within the past 8-10 hours), compared to standard urine tests that can detect THC for 30 days or more.
The technology has the potential to expand to other vertical markets such as reproductive health, infectious diseases, and other illicit drug testing.
“We are thrilled and honored to receive this investment from the New Jersey Economic Development Authority,” said Himanshu Bhatia, CEO of RICOVR Healthcare. “This support underscores the innovative work we’re doing at RICOVR, and it will accelerate our mission to deliver cutting-edge diagnostic solutions that prioritize accuracy, speed, and accessibility. New Jersey has been an incredible place for us to grow, and we look forward to continuing our partnership with NJEDA as we drive advancements in diagnostic technology.”
RICOVR has previously received support from the NJEDA and Commission on Science, Innovation, and Technology (CSIT), and has received two grants from the COVID NJ Entrepreneur Support Program, two grants from the Catalyst Research and Development (R&D) Voucher Pilot Program, and one grant from the CSIT Maternal and Infant Health R&D Grant Program.
RICOVR, like all companies approved for investment under the NJIEF, will benefit from the strategic commitments made by NJIEF tax credit purchasers. These purchases, which fund investments made by the Qualified Venture Firms (QVFs), are made in tandem with commitments to provide strategic support to strengthen the State's innovation ecosystem. These commitments, which include networking, mentoring, and educational opportunities, are a scored component of the tax credit purchasers’ bids.
Yaax Capital is managed by a seasoned team of investment professionals with extensive venture capital and private equity experience. Managing Partners John Farrell and Andres Azcarraga Riveria Torres co-founded the firm together in 2018 after working together at DILA capital, a Latin American-focused venture capital firm. RICOVR Healthcare will be the first New Jersey-based business that the firm has invested in.
"We are thrilled to partner with the New Jersey Economic Development Authority to support RICOVR as they continue to develop cutting-edge technology to ensure a safe work environment,” said John Farrell, Managing Partner of Yaax Capital. "As more and more states legalize medical and adult cannabis, companies in all sectors of the economy will rely on RICOVR to promote a safe working environment while ensuring workers are treated fairly."
Applications for venture firms seeking to qualify as a QVF can be found here and are being accepted on a rolling basis. The firms approved to date represent diversity in terms of investment strategy, industry, and stage. Additionally, there continues to be strong momentum from interested managers. The roster of the current approved managers can be found here.
Applications for approved QVFs to apply for Qualified Investments into high-growth, innovative businesses based in New Jersey are also now open. The total capital available for new investments stands at over $30 million.